Ithraa Newsletter by Dom Healey

The Ithraa Newsletter

Selling Overseas Trade Delegation to Italy Carving Out New Opportunities Oman’s 21st Century Talent India Eyes Oman Investment

Quarter 1 - 2016 • Issue 01

Dear Readers Ithraa News is the new high-end quarterly e-Newsletter from Ithraa, providing an original point of view delivered with passion and precision. We will offer a selection of interviews and features to showcase Ithraa’s role in attracting and winning inward investment as well as facilitating and promoting the export of Omani non-oil goods and services. The vision of Ithraa News is to serve the interests of our readers by providing accurate and engaging content for Oman’s business community with a particular focus on inward investment and exports. Ithraa News aims to shoot straight and be on the level with its readers, distinguishing its independent editorial content through words, high-impact design and eye-catching photography that tells a compelling business story. Our audience is well-informed and internationally-oriented. They understand many of today’s business issues and what they want is information and guidance supported by real-life examples of how to penetrate new international markets, design better products through to leveraging the power of social media to promote their business activities. Our content will change to reflect developments in the market place, the articles, interviews, news and commentary will vary from issue-to-issue, but our commitment to delivering the best and most relevant information will remain. Ithraa News is passionate about the people, businesses and the issues it covers. Thanks for reading. The Ithraa Team

Founded in 1996, Ithraa is a government-run, ISO and Investors in People certified inward investment and export promotion agency. We provide a range of support services and information to help domestic and international investors set up in and export from Oman.

Connect with us @ithraaoman www.ithraa.om The Public Authority for Investment Promotion & Export Development

Contents Ithraa Leads Ambitious Trade Delegation to Italy

Gaining an International Advantage

Selling Overseas

Ithraa Q&A

The future of industry and how Oman can future proof the economy and provide opportunities for the next generation.

Oman at Work

21st Century Talent

Carving Out New Stone & Marble Opportunities

India Eyes Oman Investment Ithraa recently organized a one-day Invest in Oman meeting which saw 50 leading Omani organizations network with Indian counterparts.

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Gaining an International Advantage

Selling Overseas Ithraa has been helping Omani non-oil exporters explore and penetrate mature and emerging markets worldwide, grow jobs at home, strengthen our economy, and ensure long-term, sustainable economic growth since 1997.

Growing business is an important topic for CEOs of companies of all types across Oman right now - and if you talk about where growth is going to come from in the next decade for Omani companies, it is going to be in tackling overseas opportunities. In fact, trading internationally is a natural step for many Omani businesses looking to grow. Exporting can extend a company’s market, boost turnover and reduce reliance on a domestic customer base. But making the move from being a national to an international operation does come with its challenges. They range from overcoming exchange rate fluctuations, dealing with cultural, legal and language issues, meeting labelling requirements, coping with extended payment terms to maintaining a healthy cash flow. We work to help Omani businesses break into exporting and take advantage of its opportunities without being held back by any barriers that may stand in their way. We provide market intelligence; connect businesses with our trade and investment representatives overseas; offer financial signposting and advice; organize local and international trade events; and educate firms about markets opened by our free trade agreements. There are, though, practical steps Omani businesses can take themselves to develop new export markets and succeed overseas. They include: taking advantage of the opportunities for face-to-face contact at trade shows and B2B sessions – we took local companies to exhibitions and B2B meetings in China, Iran, Saudi Arabia, Italy, India and Ethiopia in 2015; paying attention to product design and packaging – does it meet the standards of the market you want to get into? Creating multilingual versions of marketing collaterals; leveraging technology, particularly social media – it is a very cost-effective way of reaching out to new markets; finding and using overseas partners; learning about and paying attention to the subtleties of linguistic and social conventions; getting to grips freight and logistics requirements; and making sure your workforce is globally ﬂuent – understands what you want to do and what is needed to achieve your goals. Page 2

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Nasima Al Balushi, Ithraa Director General, Export Development.

In addition to our in-house activities, services and resources, we have recently partnered with the Oman Chamber of Commerce and the Public Establishment for Industrial Estates, on OPEX, a series of large-scale, international trade shows designed specifically to renew and revitalize the promotion of Oman-made goods overseas. Given the feedback we have received from participating firms, I believe these trade efforts are paying dividends and helping change the way Omani non-oil exporters do business. As a result, now more than at any time ever before, Omani firms are selling more goods internationally.

SIDEBAR • In 2014, Oman saw its non-oil exports enter more than 140 countries. • Omani non-oil exports set a new record in 2014, reaching US$10.71bn despite continued global economic turbulence. • Non-oil exports as a share of Oman’s GDP were 13.1% in 2014 compared to 9.9% in 2009. • Exports of Plastics & Rubber were up 23.3% in 2014 compared with 2013. • Exports of Foodstuff and Beverage hit US$299 million in 2014, a rise of 19% on the previous twelve months. • We have also been encouraging Omani exporters to take advantage of the Oman-US Free Trade Agreement which has seen our non-oil exports to the US reach US$574 million in 2014 as against US$284.67 million in 2010. An increase of 101.6%.

There are so many success stories about Omani non-oil exports, for example, our stone adds decorative flair to Dubai Metro and Heathrow Airport, our batteries power London’s iconic red double decker buses and our cables can be found in Burj Khalifa, the world’s tallest building. It is powerful stories like this that has helped us achieve an all-time non-oil exports record of 8.4 per cent growth in Oman’s non-oil export revenues reaching US$10.67bn in 2014 compared to US$9.84bn in 2013. I think we should applaud Oman’s small - and medium-sized

enterprises (SMEs) for the critical role they have played in driving this export growth. It is a fact that they are often the most dynamic part of any business community because they grow and add jobs at a faster rate than more mature businesses. Lifting the participation rate of SMEs in exporting is a priority for Ithraa. With this in mind, we are devoting more time to increasing the number of SME non-oil exporters and making it easier for them to access export advice and assistance. Through all our activities, we encourage Omani SMEs to take advantage of the services, initiatives and resources we offer. If we make it easier for businesses to reach international markets, we can help them expand, create jobs and grow our economy as a whole. In talking about Oman’s non-oil exports it is crucial we consider the broader international perspective. We have slowing Chinese economic growth; falling oil prices; an under-performing Euro Zone; Japan in recession; and currency volatility in Latin America. These are major markets for us and mean challenging trading times for Oman’s non-oil exporters. Indeed, global trade growth has been disappointing in recent years, due largely to prolonged sluggish growth in GDP following the financial crisis. Looking forward we expect trade to continue its slow recovery but with economic growth remaining fragile. With regards markets, we have found that the smaller countries that do not get the big media attention can often be fertile ground for exporters willing to enter markets that large multinationals ignore. For example, Vietnam’s an economy that is enjoying an exciting economic recovery. In 2010-11, it struggled with inflation and external account difficulties, with foreign exchange reserves at low levels. Since then, there has been a remarkable turnaround posting GDP growth rate of 6.68% in 2015, the fastest pace in five years, helped by an expanding industrial sector and record foreign direct investment. We have also seen sizeable foreign direct investment coming into Vietnam. Money that is being invested for the long-term, coming from companies like Samsung. Demand is increasing for consumer goods including plastics, food, raw materials and metals. We believe there are opportunities here for Omani firms. While we have established and well-known trade links with the big Asian powerhouses of China and India, what some businesses perhaps do not realize is that some of the best opportunities can be found in the smaller cities outside the traditional trading partners tier-one list of Beijing, Shanghai, Mumbai and Delhi. In this regard, we organize B2B sessions and trade shows that are designed specifically to help Omani firms make decisions about where to take their business in these markets. India has been on our radar for some time and we have held several B2B trade meetings there and did so again in 2015. The country’s 50 million strong market of English-speaking, middle-class consumers is Ithraa Newsletter • January 2016 Issue 01

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predicted to multiply tenfold over the next 15 years, offering Omani companies opportunities in the country’s education, food, healthcare, power, renewable energy and retail sectors. The attraction of India for Omani businesses is also underscored by the two countries’ shared history and deep investment links. We recognize that it is not always easy for Omani SMEs to enter a big market such as India but the opportunities are there for those prepared to seize them. What businesses need to understand is that India is a series of interconnected regional markets where the legislative and investment climate may change from one state to another. In this regard, we can help firms compare local laws, government incentives, the available infrastructure and workforce. We are passionate about encouraging more businesses to get a foothold in international markets. Growing our economy requires looking beyond our borders. Promoting and communicating the importance of non-oil exports, in my view, is key to Oman’s long-term economic future. And whether you are the CEO of a large company exporting worldwide or a start-up thinking about taking the plunge, it pays to have a sense of where the export opportunities and pitfalls lie. And we can help. The strength of non-oil exports and the resulting impact on Oman’s communities is undeniable. So, if you are looking at getting started or growing your international operations, Ithraa’s a great place to start. We hope to meet you soon.

We are passionate about encouraging more businesses to get a

foothold in international markets.

ITHRAA EVENT Ithraa Leads Ambitious Trade Delegation to Italy Ithraa organized an ambitious three-day trade mission to Italy to spur lucrative business deals, open new markets for Omani goods and services and forge new trade and investment ties. The high-profile delegation consisting of government and private sector representatives participated in a series of three ‘Invest in Oman’ seminars which took in Como, Milan and Monza. The Invest in Oman seminar series is seen by many as a timely follow-up to the successful bilateral trade meetings held in June 2015 at the Italian Foreign Ministry in Rome, a meeting that underscored the interest of Italian ﬁrms to invest in the Sultanate. Remarking on the Italian visit, His Highness Sayyid Faisal Al Said, Ithraa’s newly-appointed Director General of Investment said: “The three city Invest in Oman event is a sign of confidence that Omanis and Italians have in the role trade and investment plays in stimulating economic growth. Indeed, in collaboration with public and private sector partners Ithraa’s engaged in an unprecedented effort to strengthen Oman’s global economic standing. The three city seminars were specifically designed to help Omani businesses expand their international presence, as well as provide Italian counterparts with information on the many investment opportunities the sultanate offers.” Organizations participating alongside Ithraa in Como, Milan and Monza included: The Supreme Council for Planning, Oman Chamber of Commerce and Industry, Oman Food Investment Holding Company, Port of Salalah, Special Economic Zone Authority of Duqm, the Ministry of Finance, Oman Air, Oman Rail, Oman Investment Fund, Omran, The State General Reserve Fund, Al Rafd Fund, The Public Establishment for Industrial Estates, Be’ah, The Royal Oman Police, Oman Convention & Exhibition Centre and Riyada. The IMF expects the Italian economy to grow at a rate of 1.2 per cent in 2016. So far, the improving economy has largely been determined by external factors. The European Central Bank’s quantitative easing programme, launched in early 2015 has led to a drop in the value of the Euro, which in turn has boosted Italian exporters and kept borrowing costs low. From food to luxury goods, manufacturers to pharmaceutical companies, Italian businesses geared towards selling overseas are driving the country’s economic recovery. “The Invest in Oman seminars were designed to capitalize on Italy’s economic rebound and strengthen trade and investment ties,” explained HH Sayyid Faisal, adding: “I can tell you with great certainty that colleagues presenting in Como, Milan and Monza were fully committed to enhancing Oman’s business connections with Italy.” Representing Oman’s food sector, Sheikh Saleh Al Shanfari, CEO, Oman Food Investment Holding Company provided attendees with an overview of the food sector in the GCC and broader MENA region. In particular, he focused on investment opportunities in poultry, dairy, red meat, hydroponics, date processing and aquaculture. “Given our strategic location and outstanding infrastructure, we are perfectly placed to help companies access and serve the region’s sophisticated and growing food markets,” explained Sheikh Al Shanfari. Feedback received from the trade mission suggests genuine interest from Italian companies in exploring further the investment and trade opportunities on offer in Oman. “We stand ready to work with partners in Italy to achieve our common objectives and bring growth, jobs and prosperity to both our countries,” concluded HH Sayyid Faisal.

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Ithraa Q&A The future of industry and how Oman can future proof the economy and provide opportunities for the next generation. We met up with Mr. S Gopalan, CEO, Reem Batteries & Power Appliances Company and Mr. Gert Hoefman, CEO, Oman Cables Industry to discuss future proofing Oman’s economy, access to capital, international markets to strengthening business, education and government ties. This is what they had to say.

Q: In order to stimulate an entrepreneurial environment, Oman needs to build stronger academic - business partnerships, how can this best be achieved? A: Gert Hoefman (GH) – A lot of European countries and institutions are interested in helping Oman in building an entrepreneurial environment. Oman should actively request universities and institutions, as well as utilizing the Chambers of Commerce, in various countries to assist in building strong ties, sharing training programs and exchanging expertise. If Oman was able to focus on the strengths of each country, for example Germany to support small business, the Netherlands to assist with agriculture, Britain for language training and France or Italy for tourism, then the country would benefit from a wide range of knowledge and perspectives to adapt and use to propel different industries forward.

graduation. Course curriculums at the tertiary level could be agreed in consultation with industry, with even use of visiting faculty from industry and sponsored research in technical institutions to meet industry needs.

A: S Gopalan (SG) – In my opinion, this goal can be achieved in a few different ways but the key is to start educating children at a young age. At Elementary and Middle school level, include courses on soft skills, communication, foreign languages especially English. At the secondary level, 4-6 weeks industry exposure programs could be included to let the students appreciate different vocational fields.

A: SG - VC and angel funds operate on a business model, where upon the funded entity achieves a certain traction issues an IPO and then exit. To create this kind of economic option we would need a well-developed and flourishing stock market, something I feel will still take time. Given these issues, SMEs in Oman will have to depend on Government support for quite a while.

It is neither necessary nor desirable for every school leaver to go on to higher education. Vocational training could be an excellent option and before a student decides on the same, it is necessary to understand the possibilities; this is something that can only result out of industry exposure. At Higher college level, summer internships could be made compulsory with an evaluation report from the organization becoming a mandatory requirement for Page 6

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Q: The general consensus is that access to capital is absolutely crucial for sustained small business growth. How do we attract bank, VC and business angel monies to Oman’s small business sector? A: GH – In my experience, a good business plan attracts money. While financing is important, it all starts with a good business plan. Preparing a good business plan is not easy. Don’t go with the first version, make sure the plan is well thought out and questions can be answered. A national online platform bringing parties together could facilitate this enormously.

Q: Are Omani firms too narrow-minded or near-sighted to see the global potential of their businesses? Is it time for Omani companies to boldly take their companies to the next level? If so, how’s this to be done? A: GH – The important message for Omani companies to embrace as they prepare themselves for the regional and global market: Innovate! In such a fast-changing world, the constant focus on innovation is a must. Changing, becoming more

Mr. S Gopalan, CEO, Reem Batteries & Power Appliances Company.

Mr. Gert Hoefman, CEO, Oman Cables Industry.

modern and taking on the latest technologies are the key words. It is a prerequisite to be ready for the world and Omani companies have to do better in this respect. I am in favour of a national initiative supporting innovation.

who, in 10 years, could be leading Oman’s industrial sector.

A: SG – I don’t think Omani companies are near sighted. They appreciate the advantages of globalization, especially considering the limitations of the domestic market. However, what hinders most firms is the lack of adequate expertise and knowledge and perhaps we need greater assistance from government. While Ithraa was set up to attract and win inward investment as well as facilitate and promote Oman non-oil exports, what might help their objectives is to boost the role of Ithraa’s Export Development Working Group to help identify and solve challenges facing exporters. As regards Omani companies moving to the next level, now is definitely the time. Q: Do you think Oman lacks enough available capital from multiple sources to support rapid growth? A: SG – I don’t think so. As I mentioned earlier it is the lack of a stronger capital market that is preventing the VC/Angel fund model to function. Banks are flush with funds and at this stage of Oman’s development the government’s role will continue to be vital through a guarantor and advisory role. Private funds are also likely to be available, but we need to set up an institutionalized mechanism to enable strategic investors to operate. Q: Oman’s businesses, academia and government must work more closely together to ensure that appropriate training opportunities align with business needs and future societal demands, how do you suggest we go about this? A: GH – I suggest universities continue to interact with the various parties in the society to understand the needs. From my perspective, language training and understanding intercultural co-operation should remain high on the agenda. A: SG - In addition to what I mentioned earlier regarding school courses, programs like the Zawawi Executive Service’ created by our group and initiated four years ago could help in building a stronger cadre of young Omani business managers and leaders

Q: How can we further encourage decision makers to look beyond their own resources, identify the best practices from outside the country and put those strategies to work? A: SG – It is not simply the question of decision makers to look beyond their own resources. It is the question of putting the proper elements in place that attracts outsiders to come in. Industry best practices need to be introduced, nurtured and encouraged. Programs such as His Majesty’s Cup for Industry are perhaps too focused on Omanization, legal compliances, environment and the balance sheet. While all these are important, focus should also be placed on adopting best practices and included in the competition’s criteria. A: GH – The key to future growth is to develop a dialogue and work with people and institutions that are willing and able to share information. Only by a participative knowledge transfer are we are able to improve. Building a strong cooperation with European companies could facilitate this. Q: What matters is what you don't know. Because the real source of competitive advantage in any organization is how it deals with the fact that the people inside it don't know everything they need to know. Ultimately the question is: How does your organization deal with uncertainty? A: GH – Uncertainty is a given fact in today’s business. By reacting quickly and innovating constantly we are able to withstand competition and remain at the forefront of technology and organization. A: SG – Knowledge transfer and transparent functioning are keys to this. Ultimately it is a question of the Core Values that an organization practices that determines its ability to deal with any issue, let alone uncertainty. Development of strategic thinking is another important facilitator in this respect. Over the years such processes have been developed successfully at Reem Batteries, which has contributed significantly to our growth and leading to our product now being made available in over 50 countries worldwide. Ithraa Newsletter • January 2016 Issue 01

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Oman at Work

21st Century Talent The way we work, the workplace, talent, skills, vocational training and careers were put under the microscope recently at a series of four evening seminars organized by Ithraa, Supported by GUtech, Bank Muscat, Al Wisal and Merge 104.8FM.

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years and what those changes would mean for inward investment, non-oil exports, employers, education and individuals, particularly the youth and Government. Oman at Work panelist, Shatha Al Maskiry, Managing Director, Protiviti Oman said: “A number of local and global trends are impacting business, skills and jobs, ranging from emerging economies, demographic change, migration, technological developments to changing organizational structures. These rapid, complex shifts are affecting labour markets and education and training policies around the world.” In response to these complex shifts, Oman has invested heavily in education and training to create the next generation of business and public sector leaders. The Millennial generation, born between 1980 and 2000 and making up 75 per cent of the global workforce by 2025, is better educated and more diverse than any other generation in Oman’s history. And their working lives will be very different to previous generations, research suggests a typical Millennial will have had 10 jobs by the age of 38. You might be in your mid-50s with children just graduating college and joining the workforce; a 40-year-old preparing for 25 more years of work, with children in school; or an MBA student thinking about the years of work ahead of you. Whatever your age, one of the most important questions you face today is how the future of work will develop, its impact on you and the organizations you work for. How will digital advances, globalization, demographic shifts and skilled labour shortages affect the way we work in ﬁve and 10 years and what does it mean for the education and career choices we are making today? To answer these questions, Ithraa crafted four seminars designed to help Oman’s public and private sector better understand the challenges and opportunities of the future of work and the fundamental impact this will have on how Oman nurtures, motivates and attracts a talented workforce that can compete in the twenty-first century. “In the 1980s, companies and government were hiring typists and switchboard operators. Today, they are recruiting webmasters and desktop publishers. We are living in a world few could have imagined even 20 years ago – a world powered by technology, fueled by information and driven by knowledge,” remarked Taleb Al Makhmari, Ithraa’s Director General for Marketing & Media and organizer of Oman at Work. Taleb added the objective of the Oman at Work initiative was to bring together public and private sector representatives to discuss how the sultanate’s work and skills environment may change over the coming Page 10

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“In the future, people will have shorter careers and more of them and the idea of a single education, followed by a single career, finishing with a single pension is over. As a result, workers will constantly need to gain new skills throughout their working life,” pointed out Taleb. But the changes happening in the global labour market are not limited to Millennials. The make-up of the workforce is expected to become older and more diverse, and the number of economically active people aged 65 or over is already on the rise. Some older workers will want to remain economically active well into their 70s – perhaps for a reduced role of two or three days a week. For others, it may be an economic necessity rather than a positive choice. “What we will see is a four-generation workplace with employees ranging in age from 18 - 80. Managing the different needs, aspirations and values of such a diverse group will be a skill in its own right. In fact, different generations have to understand each other. Fostering intergenerational solidarity in the workplace will be extremely important to the future performance of Omani businesses,” explained Sajda Al Ghaithy, Ithraa’s Director of Media. Employee engagement is another hot topic. A Gallup study revealed that roughly 180 million employees worldwide are psychologically committed to their jobs and likely to be making positive contributions to their organizations. The bulk of employees worldwide, 63%, are not engaged and this is costing economies dearly. Managing the workplace and employees of the future will require a strategy. It may be a challenge, but organizations that fail to start on this journey will quickly get left behind.

ITHRAA EVENT Carving Out New Stone & Marble Opportunities Many of Oman’s leading stone and marble producers exhibited at the recent Marmomacc International Trade Fair for Stone, Design and Technology in Verona, Italy. Led by Ithraa, five Omani firms joined stone and marble industry exhibitors from over 145 countries for the four-day international trade fair. Remarking on the importance of the Verona exhibition to Omani stone and marble producers, Mrs. Nasima Al Balushi, Ithraa’s Director General for Export Development said: “Marmomacc attracted over 67,000 visitors from 150 countries. It’s this kind of high-proﬁle international exposure and business networking that appealed to the participating Omani firms. Indeed, we’ve had a pavilion at Marmomacc for several years and it’s an event that’s always delivered strong commercial returns for participating Omani firms.” Mr. Christopher Vaz, General Manager of Services & Trade Marble LLC (FZC) remarked: “Participating at Marmomacc has helped us build international awareness of our product range and brand. Moreover, it’s connected us with interior designers, consultants, project owners, trade merchants as well as dealers from around the world. We believe it’s a trade show that delivers strong results and helps us grow and strengthen our market share.” Oman has significant deposits of gypsum, limestone, marble, laterite, chromite and kaolin, and the mining and mineral sector has experienced robust growth over the past few years. A key driver is the domestic construction sector, which despite current crude oil prices, shows no sign of slowing. Many in the business community expect the sector to remain strong particularly given the government’s economic diversification plans as well as the fast growing middle class which is driving the sultanate’s housing sector. Mr. Esaam Al Qaffaf, General Manager of Hamood Al-Rashidi & Bros Ltd, commented: “Given the volume of exhibitors and trade visitors at the Verona show we were able to meet target groups and establish trade connections. The show is the ideal platform to present our product range and secure new business.” Omani companies exhibiting at Marmomacc included Hamood Al Rashidi & Bros Trad.Co. LLC, Gulf Stone Company S.A.O.G, Services & Trade Marble and Mining L.L.C, Al Shanfari Marble Company L.L.C. and Al Nasr Trading & Cont. Co. Mrs. Al Balushi explained: “Business at Marmomacc was brisk and our pavilion was very busy. Omani stone and marble companies attended the show because they wanted to display their products, meet buyers, architects, distributors and designers. Their objective was clear, get the company’s name and product known and penetrate new markets, on that front, Marmomacc delivered in every respect.”

Omani Companies Exhibiting at Marmomacc • Hamood Al Rashidi & Bros Trad. Co. LLC • Gulf Stone Company S.A.O.G • Services & Trade Marble and Mining L.L.C • Al Shanfari Marble Company L.L.C. • Al Nasr Trading & Cont. Co.

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48 INSIGHTS FOUR EVENING CONVERSATIONS Organized by Ithraa, Oman at Work was a series of four evening conversations held in August 2015. The initiative was designed to help us better understand the challenges and opportunities of todayâ&#x20AC;&#x2122;s evolving work environment and the fundamental impact this is having on how Oman attracts, nurtures, retains and motivates a talented workforce.

The workplace and the way we work is continuously evolving. In the 1980s, companies and the public sector were hiring typists and switchboard operators. Today, they’re recruiting Webmasters and desktop publishers. We’re living in a world few could have imagined even 20 years ago – a world powered by technology, fuelled by information and driven by knowledge. Gallup conducted a worldwide study mapping ‘global desires’ and the results were clear: people want a job – ideally with steady hours, a regular paycheck and all-round stability. But in the years to come, this is going to be challenged and the changes being wrought by the Digital Age will reshape not just our concept of the workplace and a career but also the reality of how we actually earn a living. In the future, people will have shorter careers and more of them. Increasing numbers of people will work independently in small businesses and more women will work from home. And our notion of a company will also change. What today's companies provide salaries, benefits, education and security - will also change. In tomorrow's companies, salaries will function more like incentives, while benefits will be more like menus where not everyone will have access to the same options.

If you have any comments on 48 Insights or would like to join the conversation

we’d welcome your contribution. Ithraa Newsletter • January 2016 Issue 01

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48 INSIGHTS CONVERSATION 1

THE WORLD OF WORK A NEW DYNAMIC

You may be on your way home but you know that the working day isn’t over yet. The moment you have web access you’ll be checking your email. And what time did you really start work this morning? Was it 8:00am, when you sat down at your desk, or was it 5:15am, when you first looked at your iPhone?

The CEO leaves the office at 5:00pm to have dinner with the children but is back on the laptop and emailing by 8:00pm

WORK-LIFE MERGE

Welcome to work-life merge, a term coined by former Snapchat COO, Emily White to describe a life in which work and free time are no longer neatly compartmentalized but merged. It's a world in which staff take two hours out of the working day for something personal, but also routinely spend the same time answering emails at the weekend. Whatever your age, one of the most important questions we face is how the future of work will develop and the impact it will have on us and our organization. What’s inevitable is that, for Oman’s youth, work will change dramatically - and for those already employed, we’ll be employed in ways we can hardly imagine. Page 14

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12 INSIGHTS 01

Only organisations with a strong sense of purpose and clear identity will be sustainable and successful in the future.

Building strong managers and leaders challenges every company.

It’s a challenge for employees to manage the ‘always on’ digital culture.

Investing in employee development is no longer a luxury.

The future workplace will be multi-generational.

Employees need to be engaged and involved in decision-making.

Embrace the fact that the world of work is changing.

The number of college graduates is growing but there’s still a shortage of candidates with the right combination of technical and soft skills.

Today’s talent is confident and self determined and seeks engagement and enrichment.

Companies need to re-evaluate their approach to mentoring.

Advances in technology will continue to change how we work.

THE SKILLS TO SUCCEED IN TODAY’S ECONOMY

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48 INSIGHTS CONVERSATION 2

MILLENNIALS

A DIFFERENT WORK PERSPECTIVE Oman is investing heavily in education and training to create the next generation of business and public sector leaders. The Millennial generation is better educated and more diverse than any other generation in Oman’s history. And their working lives will be very different to previous generations.

A typical Millennial will have had 10 jobs by the age of 38

2025

Millennials make up 75% of the global workforce

THE NEXT GENERATION

But questions abound about how work fits in to Millennials’ lives and long-term aspirations. For example, how will motherhood impact well-educated women’s professional aspirations? How have tough global economic times influenced Millennials’ attitudes to work and career goals? Is today’s youth ready to join the corporate world or are they looking for alternative employment options? Page 16

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The future of work lies in empowering young talent.

Young talent wants the opportunity to learn from someone with expertise, that on-the-ground experience needs to happen today.

The changing world of work means young people won’t stay with one employer for their entire career.

Young people are aware of their shortcomings.

Young people expect lifelong growth. They’re curious and keen to learn, and develop their skills and knowledge.

Work-life balance has become a priority. Young people want work itself to be fulfilling, not just a paycheck.

With the growth of social media, young people are creating strong personal identities.

The youth of today believe business should have a clear sense of purpose and should focus on the well-being of employees and the wider community.

To remain impactful and competitive, companies will have to design roles for a purpose-driven millennial workforce.

In today’s information-based, skills-intensive economy, one thing is clear: knowing means growing.

Instead of annual performance reviews, offer more frequent, informal and real-time coaching where strengths are highlighted.

People generally leave bosses, not companies. To retain young people in the workplace, thoughtful, strong and proactive managers are needed.

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48 INSIGHTS CONVERSATION 3

VOCATIONAL TRAINING CHANGING PERCEPTIONS

Vocational training still has a reputation as a poor relation to university education. In fact, we’ve arrived at a situation where parents and students believe vocational training is a second class route to a career. If Oman’s economic potential and ambitions are to be realized, then we’ll need a much bigger push for apprenticeships and vocational career pathways. How can we encourage apprenticeships and vocational training into the mainstream? How do we get more Omani youth trained as engineers, technicians, electricians, plumbers, mechanics and carpenters? We do it by breaking stereotypes, and it has to start at school, and it has to start with those who influence young people, and that’s parents and teachers.

We’ll need a much bigger push for apprenticeships and vocational career pathways

BREAKING STEREOTYPES

Let’s talk it up. In the office, at meetings, in conferences and over Twitter and Facebook. The more conversations we create around apprenticeships and vocational training, their value and benefits and how to embed them, the more perceptions we can change. Page 18

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Vocational education is often seen as a poor second to academic study.

Vocational training is unique. It delivers a personalised and flexible program of learning, underpinned by links to work and careers.

We need a single, constant message. From Al Buraimi to Sohar, from Muscat to Salalah, vocational education fuels our economy.

The main reason parents don’t encourage their children to enter vocational training is because they don’t understand it.

Young people require more information on vocational training so they can make informed choices about qualifications and careers.

To prosper in today’s fast-moving global economy we need to upgrade the non-university vocational and technical sector.

Let’s reassess the meaning of ‘career’ and then figure out how we’re going to achieve it.

Oman’s business community has an important role to play in developing and assessing our vocational training system.

There’s often a view that vocational training is for people who don’t make it to University. This is wrong.

We live in an age where there’s recognition for students who are going to college to become doctors and lawyers. But there’s not enough recognition for people who could be very good electricians, plumbers, carpenters, car mechanics or builders. Pivotal professions where job opportunities abound.

We need more dialogue with schools, parents and young people to introduce the idea that there are many post-18 study and career options.

A focus on developing vocational training is crucial. Without a high-quality workforce able to support expansion or investment, economic growth will be hindered.

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48 INSIGHTS CONVERSATION 4

STEM

JOBS OF THE FUTURE Science, technology, engineering and mathematics (STEM) workers will drive Oman’s innovation and competitiveness by generating new ideas, new companies and new industries. However, the Omani economy is currently less STEM-intensive than some of its competitors; enhancing our presence in these industries could increase future economic health.

SOLUTIONS

POWERING TOMORROW’S ECONOMY In the decades to come, it’s crucial that Oman’s youth be encouraged to pursue STEM degrees, apprenticeships and careers. Both Oman’s traditional and emerging industries will rely on workers in STEM occupations, and a steady supply will help ensure the sultanate’s future success. Page 20

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STEM skills are needed for navigating the modern world and competing in the 21st century job market.

STEM skills aren’t just a source of jobs they’re a source of jobs that pay very well.

The future of the economy is in STEM.

Women in STEM are essential for building a strong economy and a bright future for Omani businesses.

STEM education should be prioritised.

Mentors play a critical role in bringing new people, and particularly women, to careers in STEM.

We have to adopt a ‘science is for everyone’ approach.

To get our children more excited about science, adults need to get excited about it too.

STEM can improve Oman’s competitiveness.

In addition to improving the quality and quantity of STEM educators, emphasis has to be placed on the benefits of STEM education to students, particularly with girls.

With challenges such as climate change and securing global access to food, drinking water and healthcare it’s clear why STEM is fundamental to life in the 21st century.

We need to make mathematics and science “cool” with image-conscious high school students.

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THANK YOU

Thank you to all the panelists, supporters and attendees who made Oman at Work a huge success. It was four evenings of learning and networking. And sincere thanks to Bank Muscat for hosting the event. Shabib Al Mamari Khalid Al Haraibi Shatha Al Maskiry Scott Armstrong Luma Al Saleh Professor Nikolaus Knebel Raed Dawood HH Sayyid Dr. Adham Al Said Duha Awayes Jamal Al Asmi Farah Al Hinai Faisal Al Shanfari Dr. Sana Al Balushi Robert MacLean Sayyid Nasr Al Busaidi Raza Ashraf Hani Al Zubair Dr. Tobias Effey Dr. Nadiya Al Saady Dr. Basel Dayyani Dr. Mohammed Al Mugheiry Dr. Wael Al Harrasi Rayan Al Kalbani Salim Al Mahrooqi Bank Muscat GUtech The Times of Oman Shabiba Merge104.8FM Al Wisal FM

If you have any comments on 48 Insights or would like to join the conversation

#oman atwork

we would welcome your contribution. We are available on omanatwork@ithraa.om

Oman at Work

48 Insights is a contribution to a long-term conversation about themes shaping Omanâ&#x20AC;&#x2122;s future economic success and global competitiveness. At this stage of the conversation we are looking to provide a perspective on, and an analysis of, the world of work in Oman and the factors influencing its evolution.

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ITHRAA EVENT

India Eyes Oman Investment Ithraa recently organized a one-day Invest in Oman meeting which saw 50 leading Omani organizations network with Indian counterparts. Attended by His Excellency Indra Mani Pandey, India’s Ambassador to the Sultanate of Oman, the meeting consisted of a series of presentations delivered by Ithraa; the Public Establishment for Industrial Estates; Port of Salalah; Sohar Port & Freezone; Special Economic Zone Authority at Duqm; Oman Investment Fund; Larsen & Tubro and the Oman Indian Fertilizer Company. Presentations were followed by B2B meetings plus a site visit to Sohar Port & Freezone. His Highness Sayyid Faisal Al Said, Ithraa’s Director for Investment Promotion remarked: “Building on our successful visit to India in August 2015, we organized, in partnership with key stakeholders, this important follow-up session to strengthen investment and trade ties with India. Indeed, by working together our two countries can achieve great things.” Oman and India enjoy a longstanding and strong relationship, one that dates back centuries. In 2015, the two nations celebrated the 60th anniversary of the establishment of diplomatic ties. “Our warm and cordial relations are based on mutual trust and

respect. We’re linked by geography, trade, history and culture and collaborate in agriculture, healthcare, infrastructure, tourism, manufacturing, education, oil and gas, power and mining,” emphasized Ithraa’s Director General for Investment Promotion. Business between Oman and India is strong, over 1,500 Indo-Omani joint ventures have been carried out in the sultanate with an investment of US$7.5 billion of which Indian investment is estimated at US$4.5 billion. India is also one of the sultanate’s most important destinations for non-oil exports. Bilateral trade between the two countries reached USD$5.7 billion during 2013-14 an increase of 25% over the previous year. “The scale of foreign investment interest we’re seeing from India is a vote of confidence in Oman’s long-term economic plan. The two-day visit gave us the perfect opportunity to show our Indian guests what the sultanate has to offer. We’ve a strong economy with a wealth of exciting investment opportunities,” concluded Sayyid Faisal.

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